The Complete Canadian Banking Guide for Newcomers (2026)

Why Canadian banking is different from your home country

The biggest surprise for most newcomers: your credit history does not transfer to Canada. Canada's two major credit bureaus — Equifax Canada and TransUnion Canada — have no connection to foreign credit agencies. Whether you had a perfect credit score at home or had never used credit in your life, you start at exactly zero here.

This is not bad credit. It is no credit — and there is a clear, well-understood path to building it. We cover that in detail in our credit score guide.

The second key difference: Canadian banking is dominated by six large banks (the "Big Six") that control roughly 90% of retail deposits. Unlike many countries, there are no nationwide co-op banks, and regional banks are rare. Your main choice is between a Big Six bank, a credit union, or a digital bank.

The third difference: monthly banking fees. Most Canadian chequing accounts charge $10–$30/month in fees unless you maintain a minimum balance. Newcomer programs waive these fees for 1–2 years — and choosing the wrong account at arrival can cost you $240+ in the first year alone.

Big Six banks vs digital banks for newcomers

Both have real advantages depending on your situation. Here is how to think about it:

Big Six banks (RBC, TD, Scotiabank, CIBC, BMO, National Bank)

Best for: newcomers who want in-branch support, multilingual staff, and a full suite of financial products under one roof.

• ✓Free chequing for 1–2 years via newcomer programs
• ✓Credit cards available to newcomers with no Canadian credit history
• ✓Mortgage pre-approval and banking relationship built over time
• ✗Monthly fees kick in after the newcomer period (typically $14–$30/month)
• ✗Savings interest rates are very low (0.01–0.05%)

Digital banks (KOHO, Wealthsimple, Tangerine, Simplii, EQ Bank)

Best for: newcomers comfortable with app-based banking who want $0 fees forever and higher savings rates.

• ✓$0 monthly fees — no balance minimum required
• ✓Higher savings rates: EQ Bank and Wealthsimple pay 3–4% on savings
• ✓KOHO offers credit building with no credit check required — ideal for newcomers
• ✗No branches (Tangerine has some, others are app-only)
• ✗Harder to use as a primary account for mortgage applications

Newcomer banking programs compared (2026)

Every Big Six bank has a newcomer program. Here is what each one actually offers as of 2026. Always verify current terms on the bank's official website — fees and bonuses change.

Phase 2 affiliate links (Scotiabank, BMO) will be added here when program approval is complete. See our bank comparison page →

What ID you need to open a Canadian bank account

Canadian banks require two pieces of ID. You do not need a SIN to open an account, but the bank will ask for it to report interest income to CRA. Here is what to bring:

• 1.Passport — your most important document; accepted by all banks
• 2.Immigration document — PR card, work permit, study permit, or COPR (Confirmation of Permanent Residence)
• 3.SIN card or letter — not required to open an account, but bring it if you have it
• 4.Proof of Canadian address — lease agreement, utility bill, or a letter from your employer. If you just arrived, a hotel reservation or letter from a host works.

Source: Financial Consumer Agency of Canada — Opening a bank account

How to open your first Canadian bank account (step by step)

1. 1
   Choose your bank

   Pick a Big Six newcomer program based on the comparison above. Most newcomers go with Scotiabank StartRight (can start online before arriving) or TD/RBC (widespread branches).
2. 2
   Book an appointment or walk in

   Big Six banks accept walk-ins at most branches, but newcomer account openings often take 45–60 minutes. Booking ahead saves time.
3. 3
   Bring your documents

   Passport + immigration document at minimum. Bring your SIN if you have it, and proof of a Canadian address.
4. 4
   Request the newcomer program specifically

   Say: 'I am a newcomer and I would like to open an account under the newcomer program.' This ensures fees are waived. Staff sometimes default to a standard account.
5. 5
   Set up online banking and e-Transfer

   Download the bank app before you leave the branch. Ask a staff member to show you how to send an Interac e-Transfer — you will use it for rent, splitting bills, and everything else.
6. 6
   Open a KOHO account the same day (optional but recommended)

   KOHO approves newcomers instantly with no credit check. Use it to start building credit from day one — more on this below.

Chequing vs savings accounts — which to open first?

Open a chequing account first. It is your everyday spending account — you get a debit card, Interac e-Transfer, direct deposit, and bill payment. All newcomer banking programs are built around chequing accounts.

Savings accounts at Big Six banks pay almost no interest (0.01–0.05%). For meaningful savings returns, use Wealthsimple Save (currently 3–4%) or EQ Bank (similar rates) once your chequing account is set up.

Interac e-Transfer explained

Interac e-Transfer is Canada's near-universal person-to-person payment system. If you send money using your banking app to an email address or phone number, that is an Interac e-Transfer. Almost every landlord, roommate, and small business in Canada uses it.

• ✓Available from all major bank apps and most digital banks
• ✓Usually free under newcomer programs (normally $1–$1.50/transfer)
• ✓Money arrives within minutes during business hours, same-day otherwise
• ✓Autodeposit lets recipients skip the security question step

Source: Interac — How e-Transfer works

How to avoid monthly fees as a newcomer

The newcomer programs at Big Six banks waive fees for 1–2 years. After that, you have three options:

1. 1.Maintain the minimum balance. Most plans waive fees if you keep $3,000–$4,000 in the account at all times. This is the easiest option once you have a stable income.
2. 2.Downgrade to a basic plan. The FCAC-mandated no-cost basic banking account is available at every Big Six bank for qualifying low-income customers — ask your branch.
3. 3.Switch to a free digital bank. Tangerine (owned by Scotiabank) and Simplii (owned by CIBC) charge $0 forever. Tangerine is especially popular as a secondary or primary account after the Big Six newcomer period ends.

Understanding Canadian credit

Your credit score in Canada is a number between 300 and 900 maintained by two bureaus: Equifax Canada and TransUnion Canada. Lenders, landlords, employers, and phone companies use this number to assess how reliably you pay bills.

As a newcomer, your score does not start at 300 (that would indicate past problems). It starts as unscored — lenders simply have no data on you. This is a temporary and fixable situation.

The five factors that determine your score:

• →Payment history (35%): Do you pay on time, every time?
• →Credit utilization (30%): What % of your credit limit are you using? Keep it under 30%.
• →Length of history (15%): How long have your accounts been open?
• →Credit mix (10%): Cards, loans, lines of credit — variety helps
• →New inquiries (10%): How many times have lenders checked your credit recently?

Source: Financial Consumer Agency of Canada — Understanding your credit score

Your first steps to building credit in Canada

The fastest path to your first Canadian credit score — achievable in 3–6 months:

1. 1.Get a secured credit card or KOHO credit building product (see below)
2. 2.Use the card for small purchases every month — coffee, transit, groceries
3. 3.Pay the full balance every month — not just the minimum
4. 4.Check your score for free with Borrowell after 3 months

See our full guide: Canadian Credit Score Guide for Newcomers 2026 →

Secured vs unsecured credit cards for newcomers

Most newcomers cannot get an unsecured credit card in their first months — lenders have no credit data to approve you on. Your options:

Secured credit cards (deposit required)

You put a deposit (typically $200–$500) that becomes your credit limit. Use the card, pay it off monthly, and the bureau sees positive payment history. After 12–18 months, most issuers upgrade you automatically to an unsecured card and return your deposit.

KOHO credit building (no deposit required)

KOHO offers a credit building feature inside their prepaid card app. You make a small recurring payment (like a subscription) and KOHO reports it to Equifax. No hard credit inquiry, no deposit. This is the easiest way to start building credit as a newcomer.

Open a KOHO account (affiliate link) →

Newcomer bank credit cards (unsecured)

Big Six newcomer programs include a no-fee credit card that does not require Canadian credit history. RBC, Scotiabank, and TD all offer this. The credit limit starts low ($500–$2,000) but the account goes on your credit file immediately.

Frequently asked questions